Eagle Plains and Silver Standard Provide Exploration Update on Fisher Gold Project, Saskatchewan
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Eagle Plains and Silver Standard Provide Exploration Update
on Fisher Gold Project, Saskatchewan
Cranbrook, B.C., May 9th, 2017: Eagle Plains Resources Ltd. (TSX-V:EPL) (“EPL” or “Eagle
Plains”) has recently received a summary report from option partner Silver Standard Resources Inc.
(TSX: SSO) (NASDAQ: SSRI) (“Silver Standard”) outli ning progress and future plans for EPL’s 100%-
owned Fisher project located 125km east of LaRonge, Saskatchewa n. The project is contiguous to the
north, south and east with Silver Standard’s Seabee Gold Operation. Silver Standard holds an exclusive
option to earn up to an 80% interest in the 34,000 ha property by completing $4M in exploration
expenditures, including $400,000 already incurred f or the 2016 exploration program, and making $3.3M
in cash payments to EPL (see details below- all figures in Canadian dollars ).
Highlights
• Detailed geological compilation and geophysical interpretation completed
• Permits approved by Government of Saskatchewan
• 8km winter road completed, providing seasonal land access from the Seabee Gold Operation
• Diamond drill, fuel, heavy equipment and lumber successfully transported to site
• Fieldwork expected to commence in early June and continue until Fall 2017
• 2017 exploration program budget set at approximately $1M
See Fisher area 2017 exploration highlights map here .
The overall objective of the 2017 exploration progr am is to build a Mineral Resource base on the Fishe r
property. To achieve this objective, the exploratio n team will focus on improving and refining the
geological and structural framework of the Fisher p roperty, further evaluating and testing historical
mineral occurrences and identifying additional mine ralization in setting similar to those currently be ing
mined at the Seabee Gold Operation.
The 2016 exploration program conducted by Eagle Pla ins and funded by Silver Standard verified certain
similarities to those seen at the Seabee Gold Opera tion, including host lithologies and contact
relationships, style of mineralization, and presenc e of multiple fault systems that allowed for high f luid-
flow regimes. The Seabee Gold Operation has been in continuous production since 1991 and has
produced approximately 1.2M ounces of gold from the Seabee and Santoy deposits. As reported by
Silver Standard in its news release dated February 23, 2017, as at December 31, 2016, the Seabee Gold
Operation includes the following estimated Mineral Reserves and Mineral Resources: Proven and
Probable Reserves of 360,000 ounces of gold at an a verage grade of 8.19 g/t; Measured and Indicated
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Resources of 570,000 ounces of gold at an average g rade of 7.99 g/t; and Inferred Resources of 640,000
ounces of gold at a grade of 7.74 g/t. Silver Stand ard recently reported uncut drill intercepts gradin g up
to 1,004 g/t gold over 1.6m and 3,887 g/t gold over 0.4m (true widths) at its Santoy Gap deposit, loca ted
approximately 3km northwest of the Fisher property boundary ( SSO news release- May 1, 2017 ).
Management cautions that past results or discoveries on proximate land are not necessarily indicative of
the results that may be achieved on the subject properties.
Ore geology at the Seabee Gold Operation consists o f high-grade vein mineralization associated with
volcanic and mafic intrusive rocks which have been structurally disrupted by splays of the deep-crusta l
Tabbernor Fault system. The Seabee Gold Operation a nd the Fisher project overlie the Pine Lake
greenstone belt. Mineralization at the Seabee Gold Operation is affiliated with the more westerly-
oriented Laonil Lake shear zone which is a splay of the north-trending Tabbernor Fault. Field and
underground observations at the Seabee Gold Operati on indicate that shear structures nucleated at
contacts between felsic intrusive and mafic intrusi ve or volcanic lithologies, with high-grade zones
forming at fault intersections.
Details of the Fisher Option Agreement
To earn a 60% interest over four years, Silver Stan dard paid $100,000 to Eagle Plains on signing of th e
agreement, and has agreed to complete $4,000,000 in exploration expenditures, and make annual cash
payments of $75,000 for each of the four years of the option period. Silver Standard funded the $400,000
2016 exploration program completed by Eagle Plains (see news releases July 18, 2016 and September
12, 2016), which is included in the $4,000,000 expl oration expenditures. Once the 60% earn-in has been
completed, Silver Standard has a 90-day, one-time o ption to earn an additional 20% interest (for a tot al
of 80%) by making a cash payment of $3,000,000 to E agle Plains, at which time an 80/20 joint venture
will be formed to further advance the property. Eag le Plains will retain a 2.5% Net Smelter Return
(“NSR”), subject to reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may
be reduced by 1% at any time upon payment of $1,000,000 by the joint venture. In addition, Eagle Plains
will receive advance royalty payments of $100,000 a nnually from the joint venture until commencement
of commercial production.
Additional Eagle Plains Projects in the Area
Eagle Plain’s 100%-owned Orchid and Chico projects are located south of the Fisher property and
contain similar geology and mineralization as the F isher project (see location map). Both properties
overlie significant strike-lengths of the Tabbernor structure in addition to hosting mineralized splay
structures interpreted to be related to the Tabbern or. Aben Resources Ltd. (TSX-V-ABN) (“Aben”)
holds an option to earn up to an 80% interest in th e Chico property by completing $3.5M in exploration
expenditures, issuing 2.5M shares of Aben and making $150,000 in cash payments to Eagle Plains.
Orchid Project Update:
The Orchid project was staked by Eagle Plains in 20 14 and was optioned to North Arrow Minerals who
explored the property for its diamond potential unt il relinquishing the option in 2016. The property has
historically been explored for its gold potential s ince the mid-1980s and contains numerous high-grade
mineral occurrences grading from trace values to hi ghs of 41.3 g/ton (Orchid Au Zone), 19.2 g/ton Au
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(Tim’s Showing), 12.7 g/ton (Eureka), and 8.5 g/ton (Terra Zone) as well as significant Ag (144.5 g/ton),
Cu (3.9%), and Mo (1300 ppm)- all values returned from grab samples .
In 2016, a high-resolution airborne magnetometer su rvey was completed on the property. Eagle Plains is
currently preparing for an aggressive exploration p rogram scheduled to commence in June, 2017.
Fieldwork will include trenching, geological mappin g and soil geochemical sampling. Eagle Plains is
seeking joint-venture participation to further advance the Orchid project.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral
projects throughout western Canada. The Company is committed to steadily enhancing shareholder value
by advancing our diverse portfolio of projects towa rd discovery through collaborative partnerships and
development of a highly experienced technical team. Managements’ current focus is to preserve its
treasury while advancing its most promising explora tion projects. In addition, Eagle Plains continues to
seek out and secure high-quality, unencumbered proj ects through research, staking and strategic
acquisitions. Since 2012, Eagle Plains has added t o its portfolio a number of new projects exceeding
130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining
jurisdiction which was recently recognized by the Fraser Institute as the best place in the world in terms of
Investment Attractiveness. Throughout the explorat ion process, our mission is to help maintain
prosperous communities by exploring for and discove ring resource opportunities while building lasting
relationships through honest and respectful business practices.
Expenditures from 2011-2016 on Eagle Plains-related projects were approximately $16.0M, which was
funded by Eagle Plains and, for the most part, by t hird-party partners. This exploration work resulte d in
approximately 15,000 m of diamond-drilling and exte nsive ground-based exploration work facilitating the
advancement of numerous projects at various stages of development.
Technical aspects of this news release have been reviewed and approved by Jarrod Brown, P.Geo.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information on EPL, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: [email protected] or visit our website at http://www.eagleplains.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.